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Template:Isda Designated Event summ: Difference between revisions
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These are mainly those [[merger]] type activities that no-one has ever managed to conveniently label<ref>And no, “Designated Event” does not count as a convenient descriptive label.</ref> including [[consolidation]], [[amalgamation]], [[merger]], whole-business transfers, [[reorganisation]], [[reincorporation]] or [[reconstitution]], or taking control of the company, or changing its [[capital structure]] — including creating [[indebtedness]]... | |||
Say ''what''? | Say ''what''? | ||
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Some learned commentators feel this is rather harsh, especially if you’re in the finance game, where raising indebtedness is part of what you do. Arguably, a bank deposit is a form of indebtedness. Loosely, so is any negative credit exposure. Likewise, the stricture applies to all {{{{{1}}}|Credit Support Provider}}s and {{{{{1}}}|Specified Entities}}, so woe betide if one of those is a [[financial institution]] too. | Some learned commentators feel this is rather harsh, especially if you’re in the finance game, where raising indebtedness is part of what you do. Arguably, a bank deposit is a form of indebtedness. Loosely, so is any negative credit exposure. Likewise, the stricture applies to all {{{{{1}}}|Credit Support Provider}}s and {{{{{1}}}|Specified Entities}}, so woe betide if one of those is a [[financial institution]] too. | ||
The pragmatist might well say, “yeah, that’s how it reads, but no one would ever take the point right?” While it’s bracing to hear such an expression of [[i believe|trust and confidence]] in the ''bona fides'' of | The pragmatist might well say, “yeah, that’s how it reads, but no one would ever take the point right?” While it’s bracing to hear such an expression of [[i believe|trust and confidence]] in the ''bona fides'' of one’s fellow merchant in the markets, just “trusting one other” is not really the vibe of the international derivatives documentation community, and in any case if no one needs this clause, why write it in? | ||